May 2, 2011 / 1:45 PM / 7 years ago

UPDATE 1-Alange internal review finds output control not effective

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May 2 (Reuters) - Canada’s Alange Energy Corp posted a wider fourth- quarter loss and said an internal review found that it lacked effective operational control while determining its production.

In January, the oil and gas exploration and production company revised its third-quarter production figures, saying that the numbers were based on capacity rather than production.

Alange, which has more than 1.2 million acres of property in Colombia, said the review also found that it did not maintain effective controls to ensure that asset sales were subject to a formal approval process, it said in a statement on Monday.

The review also showed that the company did not maintain effective procedures with respect to competitive awarding of contracts.

Alange, which had total debt of about $47 million as at the end of 2010, had ended certain sales deal, reviewed some contracts, cut jobs as part of its efforts to reduce costs. [ID:nL3E7F72A1]

Alange reported a fourth-quarter loss of $31.9 million, or 4 cents a share, compared with a loss of $7.5 million, or 1 cent a share, a year ago.

The company, which started a restructuring process in January, did not maintain adequate controls for the reliable sharing of information between the operational staff and finance staff, the internal review found.

The company’s shares closed at 29 Canadian cents on Friday on the Toronto Venture Exchange. (Reporting by Bhaswati Mukhopadhyay; Editing by Sriraj Kalluvila)

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